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Market At Highest Close In 15 Months! SPX, Nasdaq, IBM, CREE, RMBS, AAPL, APA, WLT, HES

|Includes: AAPL, APA, BAC, BK, CREE, HES, International Business Machines Corporation (IBM), RMBS, STT, WFC, WLT

After brushing aside C's earnings this morning, the market shifted its focus to the Senate race in Massachusetts.  Health care stocks started to rise because Brown, the Republican's candidate, was gaining momentum.  Other sectors followed higher.  Energy stocks turned green.  Miners were also strong.  Tonight, Brown secured a victory.  Health care stocks may get a pop tomorrow morning, but, I think they are getting toppy.  Energy stocks, however, have pulled back recently and could be ready to run up again.  WLT, which we booked some very nice wins on 2 weeks ago, closed +2.73% higher today.  It is right back to the range where we traded before.  APA, up just +0.69%, should be ready to break higher if natural gas producers run.  HES, jumped above $66/share last week, can also join a rally.  Both APA and HES are scheduled to report earnigns next week.

After the market today, IBM reported earnings that easily beat the estimates.  However, IBM shares slid 1.85% in after-hours trading.  IBM ran up to a new 52-wk high during the day today and some investors decided to "sell on the news".  I think IBM still looks strong and should see above $135 soon.  (Disclosure: I do not have any position in IBM.)  CREE jumped more than +10% after reporting a quarterly profit that more than tripled!  RMBS vaulted +14% higher as Samsung agreed to settle all claims between the two companies, including a $200 million investment for 9.57 million shares in RMBS!  Above $25, RMBS should see a new breakout.  We'll be watching how it opens tomorrow!

The Dow closed up +115.78 points; SPX added +14.20 points; Nasdaq gained +32.41 points:

Most sectors closed higher.  BTK (biotechs) was very strong, making a new all-time high again!  XME (metals and mining) advanced +1.93%.  OIH (oil services) was up +1.13% while USO (oil) bounced +1.38%.  FXI (Chinese ADRs) rose +3.18%.


SPX added +14.2 points to close at 1150.23, just above the 1150 level.  The daily MAs continued higher and the MACD flattened.


Nasdaq gained +32.41 points to close at 2320.40, above the 2300 level.  It also closed above its daily MAs and its MACD flattened.

The 3 major market indices rallied back today to close at their highest level since October 2007!  SPX finally closed above 1150;  Nasdaq is back above 2300; and, the Dow closed above 10,725!  After trading in a tight range since the beginning of the year, if the indices catch up with the upper BB again, we could see a new market breakout!  We have some key banks reporting tomorrow, including BAC and WFC.  Small banks such as BK and STT also report in the morning.  Financials showed some strength today with XLF gaining +1.27%.  We'll see if the financials can keep the market going tomorrow. 

Good night and HappyTrading! ™

Disclosure: positions: none